ETH/USD posted a strong recovery on Aug. 19, enough for the altcoin to cross the $200 mark once more. But analysts warn it could be for a short time only.
Almost a week of trading near $180 is enough for Ethereum (ETH) as the altcoin has finally showed signs of recovery, leading to its crossing the $200 mark.
The ETH/USD pair trades at $201.60 at the time of writing, up by 3.7 percent in the last 24 hours. According to analysts, if ETH can stay above the said mark, then it may suggest a positive short-term trend for the crypto. Many, however, ask how long ETH can stay above $200.
A report quoted Jacob Canfield, a prominent Bitcoin analyst on Trading View, who had shared his analysis of the recent ETH price movements.
“A lot of people are asking me about ETHBTC. #ETH / #Ethereum / $ETH Daily – Broke downtrend resistance yesterday. Hasn’t made a higher high. Below. Key S/R level at .025 that needs to be reclaimed. Weekly – Very narrow range back to 2016 levels that needs to hold.”
Daily – Broke downtrend resistance yesterday. Hasn't made a higher high. Below.
Key S/R level at .025 that needs to be reclaimed.
Weekly – Very narrow range back to 2016 levels that needs to hold. pic.twitter.com/m0Ig6jx6xZ
— Jacob Canfield (@JacobCanfield) August 19, 2019
One of the possible factors cited for the price increase is the launch of Rakuten’s own cryptocurrency exchange, which supports ETH, Bitcoin (BTC), and Bitcoin Cash (BCH). Rakuten is a Japanese e-commerce giant based in Tokyo.
Another is the upward momentum in the cryptocurrency market that positively affects BTC and other crytpocurrencies.
Meanwhile, on the same day that ETH returned to the $200 region, The Star published Ethereum Co-founder Vitalik Buterin’s take on the wider adoption of crytocurrencies:
“Scalability is a big bottleneck because the Ethereum blockchain is almost full. If you’re a bigger organization, the calculus is that if we join, it will not only be more full but we will be competing with everyone for transaction space. It’s already expensive and it will be even five times more expensive because of us. There is pressure keeping people from joining, but improvements in scalability can do a lot in improving that.”
Other than ETH, the BTC/USD pair also increased and now trades at $10,881.44, with a 4.8-percent increase in the last 24 hours.